Acetone Market Size, Share Global Analysis Report, 2026-2034

Industry Insights

[220+ Pages Report] According to Facts & Factors, the global Acetone market size was estimated at USD 6.87 billion in 2025 and is expected to reach USD 11.77 billion by the end of 2034. The Acetone industry is anticipated to grow by a CAGR of 6.13% between 2026 and 2034. The Acetone Market is driven by increasing demand in chemical and plastic manufacturing industries.

Market Overview

Acetone, also known as propanone, is a colorless, volatile, and flammable organic solvent widely used in various industrial applications. It is primarily produced as a co-product during the manufacturing of phenol through the cumene process and serves as a key chemical intermediate in the production of numerous compounds. The market encompasses its utilization across diverse sectors where its excellent solvency properties and low toxicity make it an essential component in formulations and processes.

Key Insights

• As per the analysis shared by our research analyst, the Acetone Market is estimated to grow annually at a CAGR of around 6.13% over the forecast period (2026-2034).
• In terms of revenue, the Acetone Market size was valued at around USD 6.87 billion in 2025 and is projected to reach USD 11.77 billion by 2034.
• The market is driven by expanding applications in solvents, chemical intermediates, and end-use industries like pharmaceuticals and cosmetics.
• Based on the Grade, the market is dominated by Technical Grade with a share of 96%, due to its cost-effectiveness and suitability for large-scale industrial uses such as solvents and chemical production.
• Based on the Application, the market is dominated by Solvents with a share of 36%, owing to acetone's superior ability to dissolve a wide range of substances in paints, coatings, and cleaning agents.
• Based on the End-Use, the market is dominated by Chemical with a share of 39%, because of its critical role as a raw material in synthesizing compounds like bisphenol A and methyl methacrylate.
• Based on region, Asia-Pacific holds a major market share of 48%, attributed to rapid industrialization, low production costs, and high demand from manufacturing hubs.

Growth Drivers

• Expanding Chemical and Plastic Industries

The growth of the chemical industry significantly propels the acetone market, as acetone serves as a vital intermediate in producing bisphenol A (BPA) and methyl methacrylate (MMA), which are essential for polycarbonates and acrylic plastics. Increasing global demand for lightweight and durable materials in automotive and electronics sectors further amplifies this driver, with acetone's role in enhancing production efficiency and product quality being a key factor.

Moreover, advancements in manufacturing processes have led to higher acetone yields, reducing costs and encouraging wider adoption across emerging markets where industrial expansion is rapid.

• Rising Demand in Pharmaceuticals and Cosmetics

Acetone's application in pharmaceuticals for drug formulation, extraction, and purification processes drives market growth, supported by the expanding healthcare sector and increasing focus on personal care products. Its use in cosmetics, particularly in nail polish removers and skincare formulations, benefits from growing consumer awareness about grooming and hygiene.

This driver is further strengthened by innovations in bio-compatible solvents, aligning with regulatory pushes for safer ingredients, thereby opening new avenues for acetone in high-purity applications.

• Sustainability Initiatives and Bio-Based Production

The shift towards eco-friendly production methods, including bio-based acetone derived from renewable sources, acts as a major growth driver by addressing environmental concerns and reducing dependency on fossil fuels. This trend is supported by government incentives for green chemistry, encouraging manufacturers to invest in sustainable technologies.

Additionally, consumer preference for environmentally responsible products boosts demand in end-use sectors, fostering long-term market expansion through improved supply chain resilience and cost stabilization.

Restraints

• Price Volatility of Raw Materials

Fluctuations in the prices of raw materials like propylene, derived from crude oil, pose a significant restraint, impacting production costs and profit margins for acetone manufacturers. Geopolitical tensions and supply chain disruptions exacerbate this issue, leading to unpredictable market conditions.

This volatility can deter investments in capacity expansion and force end-users to seek alternatives, potentially slowing overall market growth in price-sensitive regions.

• Stringent Environmental Regulations

Increasing regulatory scrutiny on volatile organic compounds (VOCs) emissions from acetone usage in industrial processes acts as a restraint, requiring companies to adopt costly compliance measures. Restrictions on handling and disposal add operational complexities, particularly for small-scale producers.

These regulations, while promoting sustainability, can limit market accessibility in certain applications, pushing the industry towards more expensive eco-friendly alternatives.

Opportunities

• Advancements in Eco-Friendly Solvents

The development of low-VOC and bio-based acetone formulations presents opportunities for market expansion, catering to the growing demand for sustainable products in paints, coatings, and adhesives. Innovations in production techniques can lower environmental impact and attract eco-conscious consumers.

This opportunity is particularly promising in regulated markets like Europe, where incentives for green technologies can accelerate adoption and open new revenue streams.

• Growth in Emerging Economies

Rapid urbanization and industrialization in emerging markets offer opportunities for acetone demand in construction, automotive, and consumer goods sectors. Expanding manufacturing bases in these regions provide a fertile ground for suppliers to establish partnerships and increase market penetration.

Leveraging local resources and labor can reduce costs, enabling competitive pricing and fostering long-term growth through diversified supply chains.

• Customized Solutions for Specific Industries

Tailoring acetone products for niche applications, such as high-purity grades for electronics or pharmaceuticals, creates opportunities to capture premium segments. Collaborations with end-users for specialized formulations can enhance product differentiation and loyalty.

This approach addresses unique industry needs, driving innovation and expanding market share in high-value areas.

Challenges

• Supply Chain Disruptions

Global supply chain vulnerabilities, including transportation delays and raw material shortages, challenge consistent acetone availability, affecting production schedules and costs. Events like pandemics or trade conflicts intensify these issues, leading to market instability.

Manufacturers must invest in resilient logistics and diversified sourcing to mitigate risks, which can strain resources in the short term.

• Health and Safety Concerns

Acetone's flammability and potential health risks from exposure require stringent safety protocols, increasing operational costs and complicating handling in industrial settings. Public awareness of these hazards can influence regulatory changes and consumer perceptions.

Addressing these challenges involves ongoing training and technology investments to ensure safe usage, maintaining market trust and compliance.

Report Scope

Market Segmentation

The Acetone market is segmented by grade, application, end-use, and region.

Based on Grade Segment, the Acetone market is divided into Technical Grade, Specialty Grade, and others. The most dominant segment is Technical Grade, which holds the largest share due to its affordability, versatility, and extensive use in industrial solvents, paints, and chemical intermediates, driving overall market growth by enabling cost-effective large-scale production. The second most dominant is Specialty Grade, valued for its high purity in pharmaceuticals and electronics, contributing to market expansion through premium applications that require stringent quality standards and supporting innovation in high-tech industries.

Based on Application Segment, the Acetone market is divided into Solvents, Methyl Methacrylate, Bisphenol A, and others. The most dominant segment is Solvents, leading the market because of acetone's exceptional dissolving capabilities in paints, coatings, adhesives, and cleaning agents, which propel demand across multiple industries and fuel market growth by facilitating efficient manufacturing processes. The second most dominant is Methyl Methacrylate, essential for producing acrylic plastics and resins used in automotive and construction, aiding market advancement by meeting the rising need for durable and lightweight materials in modern applications.

Based on End-Use Segment, the Acetone market is divided into Chemical, Cosmetic & Personal Care, Pharmaceutical, Automotive, and others. The most dominant segment is Chemical, commanding the highest share as acetone acts as a crucial intermediate in synthesizing compounds like BPA and MMA, boosting market growth through its integral role in plastic and resin production for various downstream industries. The second most dominant is Cosmetic & Personal Care, driven by its use in nail care and skincare products, enhancing market dynamics by aligning with global trends in personal grooming and hygiene that increase consumer demand.

Recent Developments

• In January 2024, Haldia Petrochemicals Ltd launched a phenol plant in India, set to produce 185,000 tons per annum of acetone by the first quarter of 2026, aiming to boost domestic supply and reduce import dependency amid growing industrial demand.
• In December 2023, PTT Global Chemical announced resuming acetone and phenol production at 90% capacity by month's end, with an annual capacity of 150,000 tons of acetone, addressing supply shortages and stabilizing market prices in the region.
• In November 2024, Haldia Petrochemicals Ltd invested Rs. 2,000 Crore to expand its phenol and acetone plant in Haldia, enhancing production capabilities to meet escalating demand from chemical and plastic sectors.
• In August 2024, Altivia Petrochemicals raised acetone prices in North America due to market pressures, reflecting rising raw material costs and supply constraints influencing global pricing dynamics.

Regional Analysis

• Asia Pacific to dominate the global market

The Asia Pacific region dominates the acetone market, driven by robust industrial growth and high consumption in manufacturing hubs. China stands out as the dominating country, with its massive chemical and plastics industries fueling demand through extensive production of BPA and MMA for exports and domestic use. The region's affordable labor and raw materials support efficient operations, while government policies promoting industrialization further strengthen its position. Expanding pharmaceutical and cosmetic sectors add to the momentum, making Asia Pacific a key driver of global supply chains.

North America maintains a strong presence in the acetone market, with the United States as the dominating country due to its advanced chemical infrastructure and innovation in sustainable production. The region's focus on automotive and pharmaceutical applications drives steady demand, supported by technological advancements in bio-based acetone. Strict environmental regulations encourage green practices, enhancing market resilience. Collaborative research between industries and academia fosters new uses, contributing to consistent growth.

Europe exhibits significant acetone market activity, led by Germany as the dominating country with its engineering prowess and emphasis on high-quality chemical manufacturing. The region's commitment to sustainability through EU regulations promotes bio-based alternatives, boosting demand in pharmaceuticals and cosmetics. Strong automotive sector integration supports applications in lightweight materials. Investments in R&D for eco-friendly solvents drive innovation, positioning Europe as a leader in regulated markets.

Latin America shows promising growth in the acetone market, with Brazil dominating due to its expanding cosmetics and personal care industry alongside chemical production. The region's natural resources aid in raw material availability, supporting applications in paints and adhesives for construction booms. Increasing foreign investments enhance manufacturing capabilities. Focus on export-oriented industries strengthens economic ties, fostering market expansion.

The Middle East & Africa region is emerging in the acetone market, with Saudi Arabia as the dominating country leveraging its petrochemical resources for production. Industrial diversification efforts drive demand in chemicals and pharmaceuticals. Infrastructure developments increase usage in construction materials. Strategic partnerships with global players enhance technology transfer, aiding market development.

Competitive Analysis

The global Acetone market is dominated by players:

• INEOS
• Shell Chemicals
• The Dow Chemical Company
• SABIC
• Mitsui Chemicals
• Formosa Chemicals & Fibre Corporation
• Honeywell International
• LG Chem
• Reliance Industries
• Celanese Corporation
• Perstorp Group
• Chemanol
• RadiciGroup
• Altivia
• Hindustan Organics Chemicals Ltd.

The global Acetone market is segmented as follows:

By Grade

• Technical Grade
• Specialty Grade
• Others

By Application

• Solvents
• Methyl Methacrylate
• Bisphenol A
• Others

By End-Use

• Chemical
• Cosmetic & Personal Care
• Pharmaceutical
• Automotive
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America